Archives January 2019

Equities Market Opens Week on Bearish Note on Profit-taking

The nation’s stock market opened the week on bearish note as investors locked in profits recorded in the past days. As a result, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell by 0.26 per cent to close lower at 31,344.24, while market capitalisation shed N30.7 billion to close at N11.7 trillion. The market had a rallied in recent days on the back of bargain hunting, leading to significant recovery.

However, some short term investors decided to take profit due partly to what some analysts linked to renewed appetite for naira assets by foreign investors. At the closing of trading yesterday, 30 stocks lost value compared with 10 others that depreciated.

Bellwethers such as United Bank for Africa Plc, Seplat, Access Bank Plc and Guaranty Trust Bank Plc were among the price losses. But Berger Paints of Nigeria Plc led the table with 9.6 per cent, trailed by Consolidated Hallmark Insurance Plc which shed 8.5 per cent. MCNichols Plc went down by 7.6 per cent, just as A.G Leventis Nigeria Plc and Royal Exchange Plc depreciated by 6.5 per cent and 6.4 per cent respectively. Access Bank Plc and Diamond Bank Plc equally dipped by 2.3 per cent and 1.3 per cent respectively.

Access Bank Plc last week disclosed that its business combination deal with Diamond Bank Plc, would be concluded about two months earlier than initially expected. It was reported that the deal, which was set to close in June, would be completed in the second quarter.

On the positive side, NPF Microfinance Bank Plc led the price gainers with 9.5 per cent, trailed by Union Diagnostic and Clinical Services Plc with 7.4 per cent. Oando Plc and University Press Plc chalked up 5.1 per cent and 5.0 per cent in that order.

Meanwhile, in line with the bearish performance, activity level also fell as volume and value traded declined 46.7 per cent and 41.4 per cent to 219.6 million shares and N1.8 billion respectively. The top traded stocks by volume were Fidelity Bank Plc (23.8 million shares), United Bank for Africa Plc (21.9 million shares) and Diamond Bank Plc (21.2 million shares). In terms value, the most traded were: GTBank (N487.9 million), Zenith Bank (N399.3 million) and UBA (N162.0 million).

Sectorally, four of five sectors tracked closed in the red. The NSE Insurance Index declined the most shedding 1.1 per cent on account of selloffs in AIICO Insurance Plc and WAPIC Insurance Plc. The NSE Banking Index and NSE Oil & Gas Index went down by 0.5 per cent and 0.4 per cent in that order. The NSE Consumer Goods Index declined 0.3 per cent.

Source:© Copyright Thisday Online

Stock Market Gains Further on Continuing Bargain Hunting

The equities market extended its gains for the second consecutive week as investors continued their bargain hunting. Having appreciated by 3.9 per cent the previous week, the market recorded another appreciated last week with the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose by 1.35 per cent to close at 31,426.63, while market capitalisation appreciated by same margin to end the week at N11.719 trillion respectively.

The growth recorded last week reduced the year-to-date decline of the market to 0.01 per cent, indicating that the market would bounce back to positive territory if the bulls maintain their dominance this week.

Also, all other indices finished higher with the exception of the NSE ASeM, NSE Consumer Goods, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods Indices that depreciated by 0.17 per cent, 0.41 per cent, 1.32 per cent, 0.60 per cent and 2.02 per cent respectively. However, the NSE Banking Index recorded the highest growth of 7.15 per cent last week,

Although the market ended the week with a gain, analysts at Cordros Capital Limited called for cautious trading.

In spite of this week’s rally, our view continues to favour cautious trading pattern in the equities market amidst brewing political jitters ahead 2019 elections, and the absence of a positive market trigger. However, we expect the positive macroeconomic fundamentals to drive recovery in the long-term,” they said.

Daily Performance

The market had opened the week on bearish note as investors took profit after seven days of gains. As a result, the market depreciated on the first day of trading last week. However, a rebound was recorded on Tuesday as the bulls returned to the market.

The bulls lifted the NSE ASI to close higher at 30,736.88, while market capitalisation added N1.6 billion to close at N11.462 trillion.

Linkage Assurance Plc led the price gainers with 9.8 per cent, trailed by Redstar Express Plc with 9.0 per cent. Nigerian Aviation Handling Company Plc chalked up 8.3 per cent, just as Royal Exchange Plc and Oando Plc garnered 7.4 per cent and 6.8 per cent in that order.

Zenith Bank Plc was among the price gainers as investors positioned for announcement of dividend for the year ended December 31, 2018. The bank last week said its board of directors had approved the audited financial results.

Conversely, 10 stocks dipped in value led by MCNichols Plc with 9.3 per cent, followed by Sovereign Trust Insurance Plc with 8.3 per cent. Cement Company of Northern Nigeria Plc shed 7.0 per cent, while WAPIC Insurance Plc went down by 4.7 per cent among others.

Meanwhile, activity level fell as volume and value traded declined by 51.0 per cent and 56.0 per cent to 245 million shares and N2.4 billion. In terms of volume, the most active stocks were Diamond Bank (71.6 million shares), Access Bank (27.0 million shares) and GTBank (27.0 million shares while the top traded stocks by value were GTBank(N848.0 million), Zenith Bank (N236.0 million) and Seplat (N193.8 million).

On a sectoral basis, performance was mixed with two sectors appreciating while three declined. The NSE Oil & Gas Index advanced the most, up 1.7 per cent. The NSE Banking Index followed with a rise of 0.8 per cent. On the flip side, the NSE Industrial Goods Index shed the most, down 2.5 per cent, while the NSE Consumer Goods Index and NSE Insurance Index shed ices 0.3 per cent and 0.4 per cent respectively.

The market nudged 0.46 per cent higher to close at 30,878.56 on as gains by banking stocks sustained the positive performance. Similarly, market capitalisation inched up by N52.8 billion to close at 11.51 trillion. The bulls were in total control of the market as 21 stocks appreciated while 10 declined. Although First Aluminium Nigeria Plc led the price gainers, banking stocks dominated. First Aluminium chalked up 9.8 per cent, trailed by Fidelity Bank Plc with 9.5 per cent, while Union Diagnostic and Clinical Services Plc gained 7.6 per cent.

Mutual Benefits Assurance Plc, Sterling Bank Plc and FCMB Group Plc garnered 5.0 per cent, 4.9 per cent and 4.3 per cent in that order. Jaiz Bank Plc, LASACO Assurance Plc, United Capital Plc and Guaranty Trust Bank Plc added 3.7 per cent,3.3 per cent, 2.9 per cent and 2.8 per cent respectively among others.

On the contrary, Resort Savings and Loans Plc led the price losers with 8.3 per cent, trailed by Sovereign Trust Insurance Plc with 4.5 per cent. UAC of Nigeria Plc and NEM Insurance Plc shed 4.4 per cent apiece.

Commenting on the market performance, analysts at SCM Capital said:”Going forward, our near term outlook for the local bourse remains conservative owing to political concerns ahead of the 2019 electoral cycle and the absence of a positive driver. However, stable macro-economic fundamentals remain supportive of recovery in the long-term.

The market sustained its bullish performance on Thursday as rally by bellwethers boosted the NSE ASI by 0.36 per cent to close at 30,989.60, while market capitalisation added N43.2 billion to be at N11.6 trillion.

Learn Africa Plc led the price gainers with 9.9 per cent, followed by Ikeja Hotel Plc with 9.8 per cent. Veritas Kapital Assurance Plc chalked up 9.0 per cent, while AXA Mansard Insurance Plc and Royal Exchange Plc garnered 7.5 per cent and 6.9 per cent respectively.

Caverton Offshore Support Group Plc was also among the price gainers, chalking up 6.0 per cent, while NPF Microfinance Bank Plc closed 5.3 per cent higher.

Conversely, 20 stocks depreciated led by Medview Airline Plc with 9.7 per cent. Resort Savings and Loans Plc trailed with 9.0 per cent, while Union Bank of Nigeria Plc and Linkage Assurance Plc went down by 8.8 per cent apiece.

Fidson Healthcare Plc and Mutual Benefits Assurance Plc shed 5.0 per cent and 4.7 per cent in that order among others.

Market Turnover

Investors increased the demand for stocks as they total of 1.807 billion shares worth N17.232 billion in 18,332 deals, up from 1.270 billion shares valued at N13.463 billion that exchanged hands two weeks ago in 16,476 deals.

However, the Financial Services Industry led the activity chart with 1.625 billion shares valued at N14.696 billion traded in 11,778 deals, thus contributing 89.93 per cent and 85.28 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 83.560 million shares worth N138.309 million in 951 deals, while the third place was occupied by the Consumer Goods Industry with a turnover of 36.251 million shares worth N1.002 billion in 2,224 deals. Trading in the top three equities namely, Diamond Bank Plc, Access Bank Plc and Guaranty Trust Bank Plc accounted for 871.524 million shares worth N8.488 billion in 3,305 deals.

Also traded during the week were a total of 34,341 units of Exchange Traded Products (ETPs) valued at N440,166.37 executed in seven deals compared with a total of 55 units valued at N5,610.00 that was transacted the previous week in two deals. Similarly, a total of 3,498 units of Federal Government Bonds valued at N3.131 million were traded in 20 deals compared with a total of 3,573 units valued at N3.764 million transacted two weeks in 24 deals

Price Gainers and Losers

Meanwhile, 40 equities appreciated in price during the week, higher than 38 in the previous week, while 25 equities depreciated in price, lower than 29 of the previous week.

Fidelity Bank Plc led the price gainers with 24.3 per cent, trailed by Caverton with 22.6 per cent. FCMB Group Plc chalked up 22.1 per cent, just as Access Bank Plc, Royal Exchange Plc and Red Star Express Plc garnered 16.0 per cent, 14.8 per cent and 13.6 per cent in that order.

Other top price gainers included: Wema Bank Plc, First Aluminium Nigeria Plc (12.9 per cent apiece); AIICO Insurance Plc (12.7 per cent) and Linkage Assurance Plc (12.5 per cent).

On the contrary, Resort Savings & Loans Plc led the price losers, shedding 23.0 per cent, trailed by Sovereign Trust Insurance Plc with 19.2 per cent. Medview Airline Plc depreciated by 9.7 per cent, just as MCNichols Plc and Union Bank of Nigeria Plc shed 9.3 per cent and 8.8 per cent.

Other top price losers were: ETranzact International Plc (8.7 per cent); Consolidated Hallmark Insurance Plc (7.8 per cent); Seplat Petroleum Development Plc (6.2 per cent);Fidson Healthcare Plc (5.0 per cent); and Mutual Benefits Assurance Plc (4.7 per cent).

Source:© Copyright Thisday Online

NSE delists Great Nigeria Insurance

The Nigerian Stock Exchange has removed Great Nigeria Insurance Plc from its daily official list.

In a statement signed by the Head, Listings Regulation Department, NSE, Godstime Iwenekhai, the NSE described the delisting as voluntary, saying the entire issued share capital of the company was delisted on request from the company.

In an explanatory note, to shareholders on its voluntary delisting, the company said on December 24, 2018, that over the last five years, there had been little or no trading activity on the shares held by the minority shareholders.

It said its listing on the Exchange had brought no benefit to it or its shareholders.

The note read in part, “Shareholders are not benefitting from the continued listing as they are not getting any exit opportunity and their investments have been locked up as they find it difficult to dispose of their shareholding.

“Neither has the company benefited from listing on the Exchange as the company’s shares continue to trade at a significant discount to the intrinsic value. Moreover, the company is bearing unnecessary cost in complying with its listing obligations.”

The company stated that the voluntary delisting would enable the directors of the company to exercise a regulatory provision that would shield it from any enforcement of action that the exchange might effect, such as the outstanding free float deficiency.

It added that through the delisting process, it would be providing an exit opportunity to minority shareholders that did not want to remain in an unlisted company.

The NSE said, “Further to our market bulletin of December 13, 2018, notifying dealing members of the approval of the application filed by MBC Securities Limited on behalf of Great Nigeria Insurance Plc for the voluntary delisting of the entire share capital of GNI, please be informed that the entire issued share capital of GNI were today, January 25, 2019, delisted from the daily official list of the Nigerian Stock Exchange.”

Source:© Copyright Punch Online

 

Banking, industrial goods stocks lead market gains

The nation’s stock market gained N156bn in four straight days as banking and industrial goods equities listed on the Nigerian Stock Exchange came under buying pressure last week.

The market recorded one day of losses and four consecutive days of gains boosted by investor interest in bank stocks, which moderated the year-to-date return to -0.01 per cent.

Despite the losses recorded last Monday, driven by a decline in the oil and gas sector, investor interest in bank and industrial goods stocks drove gains in the market in the remaining days as the All Share Index gained 136 basis points week-on-week to settle at 31,426.63bps.

Analysts at Meristem Securities Limited said improved investors’ appetite drove market activities throughout last week as buying pressure largely seen in the banking and insurance sectors offset the losses across other sectors.

The industrial goods sector closed on a positive note, despite losses recorded in the Cement Company of Northern Nigeria Plc and Lafarge Africa Plc.

The oil and gas sector ended the week in negative territory as a result of losses recorded in Seplat Petroleum Development Company Plc and 11 Plc (formerly Mobil Oil Nigeria Plc).

The consumer goods sector recorded moderate losses as PZ Cussons Nigeria Plc, Nigerian Breweries Plc and Unilever Nigeria Plc witnessed share price depreciation.

A total turnover of 1.807 billion shares valued at N17.232bn were traded by investors in 18,332 deals on the floor of the Exchange last week, in contrast to the 1.270 billion shares valued at N13.463bn that exchanged hands in 16,476 deals during the previous week.

The NSE, in its weekly market report, said the financial services industry (measured by volume) led the activity chart with 1.625 billion shares valued at N14.696bn and traded in 11,778 deals, thus contributing 89.93 per cent and 85.28 per cent to the total equity turnover volume and value, respectively.

Analysts at Vetiva Capital Management Limited said the banking sector was boosted by major gains in Access Bank Plc, Guaranty Trust Bank Plc, Zenith Bank Plc and United Bank for Africa Plc.

The conglomerates industry followed with 83.560 million shares worth N138.309m in 951 deals.

The third place was occupied by the consumer goods industry with a turnover of 36.251 million shares worth N1.002bn in 2,224 deals.

Trading in the top three equities ― Diamond Bank Plc, Access Bank and GTB ― when measured by volume, accounted for 871.524 million shares worth N8.488bn in 3,305 deals.

This contributed 48.23 per cent and 49.25 per cent to the total equity turnover volume and value, respectively.

There were 40 gainers and 23 losers last week.

The biggest gainer was Fidelity Bank Plc, which gained 24.38 per cent to close at N2.50 per share.

On the flip side, Resort Savings and Loans Plc emerged the biggest loser, with a loss of 23.08 per cent.

Analysts at Vetiva said, “While the strong gains from this (last) week create a high chance for bargain hunting across select stocks, we believe trading activities will remain tilted towards buying as more investors begin to take positions in beaten-down stocks in anticipation of a dispersion in political clouds post-elections.”

Source:© Copyright Punch Online

 

Equities Market Rebounds on Gains by 26 Stocks

The stock market rebounded yesterday as 26 stocks appreciated after recording a decline on Monday. The market had depreciated on Monday after seven consecutive days of price rally. However, the bulls returned yesterday, lifting the Nigerian Stock Exchange (NSE) All-Share Index to close higher at 30,736.88, while market capitalisation added N1.6 billion to close at N11.462 trillion.

Linkage Assurance Plc led the price gainers with 9.8 per cent, trailed by Redstar Express Plc with 9.0 per cent. Nigerian Aviation Handling Company Plc chalked up 8.3 per cent, just as Royal Exchange Plc and Oando Plc garnered 7.4 per cent and 6.8 per cent in that order.

Zenith Bank Plc was among the price gainers as investors position for announcement of dividend for the year ended December 31, 2018. Zenith Bank went up 1.4 per cent to close at N21.80 per share yesterday. The bank on Monday said its board of directors had approved the audited financial results.

In a notification to the NSE, the Company Secretary-General and Counsel, Zenith Bank, Mr. Michael Otu, said that the results were approved on January 18.
“Consequent upon the approval, the said audited accounts will be forwarded to the Central Bank of Nigeria (CBN) for approval in line with regulatory requirements after which the bank will notify the exchange of the results,’’ Otu had said.

Conversely, 10 stocks dipped in value led by MCNichols Plc with 9.3 per cent, followed by Sovereign Trust Insurance Plc with 8.3 per cent. Cement Company of Northern Nigeria Plc shed 7.0 per cent, while WAPIC Insurance Plc went down by 4.7 per cent among others.

Meanwhile, activity level fell as volume and value traded declined by 51.0 per cent and 56.0 per cent to 245 million shares and N2.4 billion. In terms of volume, the most active stocks were Diamond Bank (71.6 million shares), Access Bank (27.0 million shares) and GTBank (27.0 million shares while the top traded stocks by value were GTBank(N848.0 million), Zenith Bank (N236.0 million) and Seplat (N193.8 million).

On a sectoral basis, performance was mixed with two sectors appreciating while three declined. The NSE Oil & Gas Index advanced the most, up 1.7 per cent. The NSE Banking Index followed with a rise of 0.8 per cent. On the flip side, the NSE Industrial Goods Index shed the most, down 2.5 per cent, while the NSE Consumer Goods Index and NSE Insurance Index shed ices 0.3 per cent and 0.4 per cent respectively.

Source:© Copyright Thisday Online

Stock market ends gaining streak, sheds N102bn

The nation’s stock market reversed its gaining streak on Monday on the back of weaker tech, industrial and oil and gas stocks.

Sell-offs in the stocks sent the equity benchmarks lower, with losses amounting to N102bn.

The market, which gained N723bn in five consecutive days, saw 14 per cent of the gains wiped off on Monday as the market capitalisation of equities listed on the Nigerian Stock Exchange dropped to N11.460tn from N11.562tn on Friday.

The All Share Index declined by 0.88 per cent to settle at 30,732.72 basis points from the 31,005.17 bps recorded on Friday, while the year-to-date return settled at -2.2 per cent.

A total of 499.212 million shares valued at N5.531bn exchanged hands in 3,874 deals, while 13 firms gained against the 18 laggards.

Though E-Tranzact International Plc was the biggest loser on Monday, oil and gas stocks led by Seplat Petroleum Development Company Plc recorded the biggest drag on the Exchange with a 4.55 per cent decline.

Other oil and gas stocks that recorded declines were 11 Plc and Eterna Plc.

Bank stocks led by Unity Bank Plc recorded a 0.14 per cent decline.

While Unity Bank saw its share price drop by 4.40 per cent, three other bank stocks ― Wema Bank Plc, Diamond Bank Plc and Guaranty Trust Bank Plc ― each recorded respective declines of 1.61 per cent, 0.95 per cent and 0.78 per cent.

On the flip side, insurance and industrial stocks recorded gains.

The industrial sector gained 0.97 per cent but witnessed sell-offs in its major stocks ― Dangote Cement Plc and Lafarge Africa Plc.

Lafarge’s share price dropped by 3.13 per cent, while Dangote’s share price fell by 2.51 per cent.

Despite losses in Sovereign Trust Insurance Plc and Mutual Benefits Assurance Plc, the insurance index gained 1.51 per cent.

The consumer goods index saw no changes at the end of trading on the floor of the Exchange on Monday.

After the stock market witnessed gains last week, analysts at Vetiva Capital Management Plc said with the conclusion of Nigeria’s elections in February as well as stable oil prices expected during the year, a return of foreign investment to the market was anticipated.

The Chief Executive Officer, NSE, Mr Oscar Onyema, while briefing stakeholders on the performance of the market in 2018 and his expectations for 2019, said he anticipated volatility in the first half of the year and stability post-elections.

He also highlighted that the swift approval of the 2019 budget would be essential for companies’ earnings and consumer spending, adding that he was expecting an uptick in market activity during the second half of 2019.

Analysts at Afrinvest Securities Limited said, “We expect Monday’s performance to persist into Tuesday’s trading session, as we maintain our near-term bearish outlook for the domestic equities.”

Source:© Copyright Thisday Online

Equities Market Gains 3.9% as Investors Renew Buying Interest

The stock market made an unexpected recovery last week as investors embarked on bargain hunting in stocks perceived to have attractive valuation. After falling 17.8 per cent last year the market had opened the New Year on bearish note due to weak demand for stocks ahead of the general elections. However, some discerning investors decided to take advantage of prices of some stocks that had hit record lows.

Hence, the return of the bulls to the market leading to seven days of gain.

Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated 3.9 per cent last week to close at 31,005.17, while market capitalisation ended higher at N11.562 trillion.

Similarly, all other indices finished higher with the exception of the NSE Banking Index that depreciated by 1.04 per cent while the NSE ASeM index closed flat.

The NSE Industrial Goods Index led with 12.7 per cent gain, followed by the NSE Insurance Index with 5.5 per cent, while NSE Consumer Goods Index and NSE Oil & Gas Index went up by 2.7 per cent and 0.59 per cent in that order.

However, commenting on the market performance, analysts at Cordros Capital Limited said: “In spite of this week’s rally, our view continues to favour cautious trading pattern in the equities market amidst brewing political jitters ahead 2019 elections, and the absence of a positive market trigger. However, we the positive macroeconomic fundamentals to drive recovery in the long-term.

Daily Performance

The Chief Executive Officer of the NSE, Mr. Oscar Onyema, had on Monday, explained why the market declined last year. He had said it was the trend globally as most emerging and frontier markets closed weaker. He noted that in Nigeria, the market would remain volatile in the first half (H1) of 2019 before it will recover in second half (H2).

“Accordingly, we anticipate volatility in equities market in H1 in 2019 with enhanced stability post-elections. We believe swift approval and implementation of the 2019 budget may have a positive impact on the companies’ earnings as well as consumer spending. Therefore, we anticipate a return of listings during the year with an uptick in market activity during the H2 of 2019,” Onyema said.

Also, last Tuesday, the market the maintained bullish trend with the NSE ASI rising 0.4 per cent to close at 30,583.21, while market capitalisation added N45.7 billion to close at N11.4 trillion.

The renewed demand has continued to boost prices of stocks. And buying interests in Dangote Cement Plc, Nigerian Breweries Plc among other bellwethers influenced the positive performance on that day.

But Neimeth International Pharmaceuticals Plc led the price gainers’ chart with 9.4 per cent, trailed by NEM Insurance Plc with 9.7 per cent. Sovereign Trust Insurance Plc went up by 9.0 per cent, while Royal Exchange Plc and Jaiz Bank Plc chalked up 8.3 per cent and 8.0 per cent respectively.

PZ Cussons Nigeria Plc, Union Diagnostic & Clinical Services Plc and Wema Bank Plc garnered 7.7 per cent, 7.4 per cent and 5.1 per cent in that order. Cement Company of Northern Nigeria Plc and Forte Oil Plc appreciated by 4.5 per cent and 2.5 per cent respectively.

Conversely, Etranzact Plc led the price losers with 9.8 per cent, trailed by Resort Savings and Loans Plc with 9.6 per cent, just as Cornerstone Insurance Plc shed 9.0 per cent. NPF Microfinance Bank Plc went down by 8.1 per cent, while First Aluminium and AXA Mansard Insurance Plc depreciated by 6.0 per cent and 4.6 per cent in that order.

By Wednesday, the market had recovered N235 billion in three days following gains recorded by bellwether stocks. The market capitalisation rose from N11.124 trillion to N11.329 trillion in three days, while the NSE ASI rose 2.1 per cent from 29,830.70 to close at 30,460.68 in the three days.

However, on Wednesday alone, accounted for 1.07 per cent bolstered by gains in bellwether counters such as Guinness Nigeria Plc, Forte Oil Plc, Dangote Cement Plc and United Bank for Africa Plc among others.

A total of 24 stocks appreciated compared with 16 others that depreciated. Sovereign Trust Insurance Plc and Veritas Kapital Assurance Plc led the price gainers with 10 per cent apiece. Guinness Nigeria Plc followed with 9.6 per cent, just as Honeywell Flour Mills Plc and NEM Insurance Plc chalked up 9.5 per cent each. Custodian Investment Plc added 9.4 per cent just as Niger Insurance Plc, Union Diagnostic and Clinical Services Plc and University Press Plc garnered 9.1 per cent, 8.0 per cent and 5.2 per cent respectively.

UBA was also among the price gainers, rising 2.0 per cent or N0.15 to close at N7.45 per share as investors took position ahead of dividend announcement by the bank. The board of directors of the bank will meet soon to approved its 2018 financial accounts and recommend a final dividend for the year. Having paid an interim dividend for the half year, expectations are high that UBA will give a dividend that is higher than what was paid the previous year.

Beta Glass Plc led the price losers with 10 per cent trailed by Northern Nigerian Flour Mills Plc with 9.2 per cent. Resort Savings and Loans Plc shed 8.8 per cent, while PZ Cussons Nigeria Plc and Neimeth International Pharmaceuticals Plc 8.3 per cent and 4.6 per cent in that order.

Activity level was, however, mixed as volume traded increased 1.9 per cent to 305.8 million shares while value traded declined 35.3 per cent to N2.1 billion. The top traded stocks by volume were Diamond Bank (141.2 million shares), Fidelity Bank Plc (18.6 million shares ) and GTBank (17.4 million shares) while GTBank(N577.7 million), Zenith Bank (N357.1 million) and Diamond Bank (N296.6 million) were the top traded by value.

The stock market appreciated further on Thursday as the bulls consolidated their hold on the market. As a result the NSE ASI appreciated 0.58 per cent to close higher at 30,137.53, while market capitalisation added N64.4 billion to end at N11.2 trillion.

Buying interest in Zenith Bank Plc, Dangote Sugar Refinery Plc and Stanbic IBTC Holdings Plc propelled the positive performance. However, Cement Company of Northern Nigeria Plc led the price gainers with 10 per cent, trailed by Ikeja Hotel Plc with 9.3 per cent. Royal Exchange Plc and C & I Leasing Plc garnered 9.0 per cent apiece. NEM Insurance Plc, AXA Mansard Insurance Plc and United Capital Plc chalked up 8.6 per cent, 8.3 per cent and 8.0 per cent respectively.

Conversely, Newrest ASL Services Plc led the price losers with 9.4 per cent followed by Veritas Kapital Assurance Plc with 9.0 per cent. Neimeth International Pharmaceuticals Plc shed 8.5 per cent, just as First Aluminum Nigeria Plc went down by 8.3 per cent.

Activity level also strengthened as volume and value traded surged 126.7 per cent to 300.1 million shares and 199.2 per cent to N3.2 billion. Diamond Bank (100.7 million shares), GTBank (39.4 million shares ) and UBA (26.2 million shares ) were the top traded stocks by volume, while GTBank(N1.3 billion), Zenith Bank (N463.0 million) and Diamond Bank (N209.4 million) were the top traded by value.

Market Turnover

In terms of turnover, investors traded 1.270 billion shares worth N13.463 billion in 16,476 deals were traded last week in contrast to a total of 1.265 billion shares valued at N14.074 billion that exchanged hands in 19,278 deals the previous week. However, the Financial Services Industry remained the most active recording 1.131 billion shares valued at N10.573 billion traded in 10,352 deals. The Consumer Goods Industry followed with 37.744 million shares worth N1.628 billion in 2,054 deals. The Conglomerates Industry occupied the third position with 37.699 million shares worth N102.918 million in 566 deals.

Trading in the top three equities namely, Diamond Bank Plc, Guaranty Trust Bank Plc and Zenith Bank Plc accounted for 696.955 million shares worth N8.509 billion in 3,753 deals.

Price Gainers and Losers

Meanwhile, 38 equities appreciated in price last week higher than 22 recorded the previous week, while 29 equities depreciated in price, lower than 44 of the previous week.

NEM Insurance Plc led the price gainers with 43.3 per cent, trailed by Sovereign Trust Bank Plc Insurance Plc with 30 per cent, while Royal Exchange Plc chalked up 28.5 per cent. Cement Company of Northern Nigeria Plc garnered 25.5 per cent just as Custodian Investment Plc and Union Bank of Nigeria Plc gained 21.7 per cent and 12.5 per cent.

Other top price advancers included: Dangote Cement Plc (10.1 per cent); Regency Assurance Plc (10 per cent); Unity Bank Plc (9.6 per cent) and Ikeja Hotel Plc (9.3 per cent).

On the contrary, Resort Savings & Loans Plc led the price losers with 29 per cent, followed by Beta Glass Plc with 17.9 per cent. Linkage Assurance Plc shed 13.8 per cent, while Berger Paints Nigeria Plc and E-Tranzact International Plc lost 9.8 per cent. NewRest ASL Nigeria Plc went down by 9.4 per cent, just as Livestock Feeds Plc depreciated by 9.4 per cent.

Other top price losers were: Livestock Feeds Plc (9.4 per cent); Northern Nigeria Flour Mills Plc (9.2 per cent); Cornerstone Insurance Plc and WAPIC Insurance Plc (9.0 apiece).

Source:© Copyright Thisday Online

Stock Market Recovers N235bn in Three Days as Bullish Trading Continues

The equities market has recovered N235 billion in the past three days following gains recorded by bellwether stocks.

The market, which dipped last week, had opened this week on a positive note since Monday, leading to a gain of N235 billion in market capitalisation from N11.124 trillion to N11.329 trillion in three days.

Similarly, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose 2.1 per cent from 29,830.70 to close at 30,460.68 in the three days.

Yesterday’s trading session accounted for 1.07 per cent bolstered by gains in bellwether counters such as Guinness Nigeria Plc, Forte Oil Plc, Dangote Cement Plc and United Bank for Africa Plc among others.

A total of 24 stocks appreciated compared with 16 others that depreciated. Sovereign Trust Insurance Plc and Veritas Kapital Assurance Plc led the price gainers with 10 per cent apiece. Guinness Nigeria Plc followed with 9.6 per cent, just as Honeywell Flour Mills Plc and NEM Insurance Plc chalked up 9.5 per cent each. Custodian Investment Plc added 9.4 per cent just as Niger Insurance Plc, Union Diagnostic and Clinical Services Plc and University Press Plc garnered 9.1 per cent, 8.0 per cent and 5.2 per cent respectively.

UBA was also among the price gainers, rising 2.0 per cent or N0.15 to close at N7.45 per share as investors took position ahead of dividend announcement by the bank. The board of directors of the bank will meet soon to approved its 2018 financial accounts and recommend a final dividend for the year. Having paid an interim dividend for the half year, expectations are high that UBA will give a dividend that is higher than what was paid the previous year.

Meanwhile, Beta Glass Plc led the price losers with 10 per cent trailed by Northern Nigerian Flour Mills Plc with 9.2 per cent. Resort Savings and Loans Plc shed 8.8 per cent, while PZ Cussons Nigeria Plc and Neimeth International Pharmaceuticals Plc 8.3 per cent and 4.6 per cent in that order.

Activity level was, however, mixed as volume traded increased 1.9 per cent to 305.8 million shares while value traded declined 35.3 per cent to N2.1 billion. The top traded stocks by volume were Diamond Bank (141.2 million shares), Fidelity Bank Plc (18.6 million shares ) and GTBank (17.4 million shares) while GTBank(N577.7 million), Zenith Bank (N357.1 million) and Diamond Bank (N296.6 million) were the top traded by value.

Commenting on the market performance, analysts at SCM Capital said:” Going forward, our near term outlook for the local bourse remains conservative owing to political concerns ahead of the 2019electoral cycle and the absence of a positive driver. However, stable macroeconomic fundamentals remain supportive of recovery in the long term.”

Source:© Copyright Thisday Online

Investors gain N120.5bn as stocks rise further

Investors in the nation’s stock market gained N120.5bn on Wednesday as the market sustained its bullish run for five consecutive days.

The market capitalisation of equities listed on the Nigerian Stock Exchange increased from N11.238tn on Tuesday to N11.359tn on Wednesday, while the All Share Index rose by 1.07 per cent to 30,460.68 basis points.

Analysts at Afrinvest Securities Limited said the gains recorded on Wednesday were driven by price appreciation in Dangote Cement Plc, Guinness Nigeria Plc and United Bank for Africa Plc.

The gains moderated the market’s year-to-date loss to -3.1 per cent, while investor sentiment strengthened to 1.5x from 1.4x on Tuesday.

Activity level on Wednesday was mixed as volume traded increased by 1.9 per cent to 305.802 million units, while value traded declined by 35.3 per cent to N2.102bn.

The top traded stocks by volume were Diamond Bank Plc (141.2 million units), Fidelity Bank Plc (18.6 million units) and Guaranty Trust Bank Plc (17.4 million units) while the top traded stocks by value were GTB (N577.7m), Zenith Bank (N357.1m) and Diamond Bank (N296.6m).

Performance across sectors was mixed as three indices closed in the green.

The insurance index led the gainers with a 2.32 per cent gain; the industrial goods index rose by 1.70 per cent, and the consumer goods index advanced by 0.24 per cent.

On the flip side, the banking sector was the major loser, with a 0.68 per cent depreciation, while the oil and gas index shed 0.01 per cent.

At the end of trading on Wednesday, 24 stocks advanced against 16 losers.

The top five gainers were Sovereign Trust Insurance Plc, Veritas Kapital Assurance Plc, Guinness, Honeywell Flour Mill and NEM Insurance, whose share prices gained 10 per cent, 10 per cent, 9.65 per cent, 9.57 per cent and 9.57 per cent, respectively.

The worst-performing stocks were Beta Glass Plc, Northern Nigeria Flour Mills Plc, Resort Savings and Loans Plc, PZ Cussons Nigeria Plc and Neimeth International Pharmaceuticals Plc, whose respective share prices declined by 10 per cent, 9.20 per cent, 8.82 per cent, 8.33 per cent and 4.69 per cent.

Source:© Copyright Punch Online

NSE to reduce compliance burden on listed firms

The Nigerian Stock Exchange has revealed plans to reduce the compliance burden on listed firms.

The Chief Executive Officer, NSE, Mr Oscar Onyema, while speaking at the 2018 Market Recap and Outlook for 2019 in Lagos on Monday, said listing activity remained relatively low in 2018, while equity turnover remained relatively stable, marginally declining by 5.45 per cent to N1.20tn.

Onyema noted that last year, only one firm was listed on the Exchange, while four firms delisted.

He said the delisted firms were struggling to comply with post-listing requirements, and had to exit the Exchange.

Onyema said, “We are trying to make sure that we continue to give listed companies value. We recently sent letters to all chief executive officers of firms and encouraged them to engage with us.

“So, we cannot stop a company from leaving if they feel their listing on the Exchange is not in alignment with their business goals. However, we are mindful of the burden of compliance and we are trying to reduce it. We are not interested in issuing fines.”

He stated that the companies that were recently removed from the Corporate Governance Index did not meet the requirements, adding that the stockbroking firms that were expelled were either inactive or had their licences revoked.

Onyema stated that the NSE equity market started the year on a high note, with the All-Share Index reaching 10-year peak of 45,092.83 basis points in January.

He said this was largely driven by the positive performance of the ASI in 2017, which emerged the best in Africa.

He said, “As we approached the second quarter, political risks, oil price volatility and rising global yields resulted in bearish sentiments that saw the ASI and equity market capitalisation fall by 17.81 per cent and 13.87 per cent to close at 31,430.50bps and N11.73tn, respectively.

“Turnover velocity inched up 0.91 percentage points to 10.25 per cent and likewise, the size of volumes traded in the period increased by 0.96 per cent to 101.43 billion with the Financial Services sector being responsible for the highest traded volume and value.”

“We believe swift approval and implementation of the 2019 budget will have a positive impact on companies’ earnings as well as consumer spending. Therefore, we expect an uptick in market activity during the second half of 2019.”

Onyema stated that to enhance listing prospects on the Exchange, the NSE had strengthened its government engagement efforts on privatisation and listing of state-owned enterprises.

“The Exchange intends to work with the private sector as well to catalyse the listing of more companies,” he added.

Source:© Copyright Punch Online